Middle-Market Businesses Show Resilience but Face Execution Gaps in 2026
Event summary
- 92% of middle-market C&I businesses rate their cash flow as good or very good, up from 79% in 2025.
- Productivity and profitability improved to 95% and 89%, respectively, but concerns over inflation and geopolitical risks rose.
- Only 39% of businesses use fraud mitigation services despite 68% acknowledging a need for stronger fraud protection.
- Just 22% of respondents leverage their banker as a trusted advisor for major financial decisions.
The big picture
Middle-market businesses are entering 2026 with strong financial performance, but mounting external pressures and internal execution gaps threaten their momentum. The survey highlights a disconnect between recognized needs—such as fraud protection and financial technology integration—and actual adoption. Valley National Bank's findings underscore broader industry trends of resilience amid uncertainty, with businesses needing to balance efficiency with adaptability in an evolving landscape.
What we're watching
- Execution Risk
- How businesses will bridge the gap between ambition and execution, particularly in cash-flow management and cost control.
- Fraud Protection
- Whether the 68% of businesses acknowledging a need for stronger fraud protection will adopt mitigation services.
- Banker Relationships
- The pace at which businesses will leverage advisory relationships with bankers to improve working capital management.